Key takeaways
If a picture paints a thousand words, then this collection of charts should do a pretty good job of painting the landscape as it affects our economy and our property markets.
Australia’s economy doesn’t operate in isolation, so it’s important to keep track of how the economies of our major trading partners are performing.
Despite concerns around the world about recessions, Australia’s economy is still growing and creating jobs.
Inflation around the world has peaked and the latest stats show that inflation in Australia is stubbornly remaining above the levels that the Reserve Bank would like.
Despite high interest rates and inflation have eaten away at the average household budget, in general Aussies have significantly more equity in their homes than they had four years ago.
Australia’s residential property market is valued at $11.7 trillion, yet only $2.4 trillion worth of debt is against this large asset base. In fact 50% of homeowners don’t have a mortgage against their homes.
Currently, Australia has a significant shortfall of housing, and the cost of residential construction has risen substantially in the last few years. This means that most developments on the drawing board are not currently financially viable to get out of the ground.
Consumer confidence remains at low levels and is likely to remain shaky due to all the geo political problems in the world.
The unemployment rate is still low at 4.2%, meaning Australians can feel secure about their financial futures.
The labour force participation rate is an estimate of an economy’s active workforce. The participation rate has increased over the last few years, and there are currently over 329,000 jobs advertised, but nobody to fill them.